Microsoft joins the growing list of technology companies that have undergone workforce reductions since the start of 2024. Having recently attained a market capitalization of $3 trillion, the Redmond-based tech giant has made an official announcement regarding the imminent layoff of 1,900 employees from its Activision Blizzard and Xbox divisions. These layoffs are expected to go into effect as soon as this current week.
These layoffs, confirmed by Microsoft Gaming CEO Phil Spencer in an internal memo, represents an 8 to 9 percent reduction of the total workforce in the company’s gaming division, which currently employs a total of 22,000 individuals.
Spencer says that this is part of “aligning on a strategy” and having a “plan with a sustainable cost structure” after the Activision Blizzard acquisition three months ago. Spencer added, “Together, we’ve set priorities, identified areas of overlap, and ensured that we’re all aligned on the best opportunities for growth.”
Spencer further claimed that the company will provide severance benefits in accordance with applicable local employment laws to affected employees, and that it will convey the same soon.
Alongside the layoffs, Blizzard President Mike Ybarra will also be leaving the tech giant. “As many of you know, Mike previously spent more than 20 years at Microsoft. Now that he has seen the acquisition through as Blizzard’s president, he has decided to leave the company,” said Matt Booty, Microsoft’s game content and studios president.
That being said, Microsoft has joined the ranks of tech giants such as Google, Amazon, Duolingo, and TikTok in implementing workforce reductions in the year 2024, all occurring within a brief span of approximately 20-25 days. Notably, Microsoft’s actions come shortly after the completion of its acquisition of Activision Blizzard, valued at $68.7 billion.
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